Page images
PDF
EPUB
[merged small][merged small][merged small][ocr errors][merged small][merged small]

made to a bank with respect to any period after June 30, 1944. There is authorized to be appropriated, out of any money in the Treasury not otherwise

appropriated, the sum of $15,000,000 for the purpose of enabling the Secretary of the Treasury to make payments to Federal land banks which accrue during the fiscal year ending June 30, 1934, and such additional amounts as may be necessary to make payments accruing during subsequent fiscal years. (July 17, 1916, c. 245, § 12, 39 Stat. 370; May 12, 1933, c. 25, $ 24, 48 Stat. 43; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273; June 3, 1935, c. 164, § 3, 49 Stat. 314; June 24, 1936, c. 762, 49 Stat. 1912; July 22, 1937, c. 516, § 1, 50 Stat. 521; June 16, 1938, c. 462, § 1, 52 Stat. 709; June 29, 1940, c. 441, § 1, 54 Stat. 684; June 27, 1942, c. 449, § 1, 56 Stat. 391; June 30, 1945, c. 204, § 4, 59 Stat. 267.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

For Government subscription to paid-in surplus of bank, in amounts equal to principal payments deferred see $ 781 (Tenth) of this title.

Dr. GN

band all beit r br ss of the 1916.

[ocr errors]

of " of this hroup in sa

bank - mad 21na Install Juli Elment prior

12 U.S.C., 8772

F.F. L. Act, § 12 Loans to be in current funds, bonds of corporation, or farm loan bonds.-Amounts transmitted to farm loan associations by Federal land banks to be loaned to its members shall, at the option of the bank, be in current funds or Federal Farm Mortgage Corporation bonds, or, at the option of the borrower, in farm loan bonds. (July 17, 1916, c. 245, $ 12, 39 Stat. 370; Jan. 31, 1934, c. 7, § 7, 48 Stat. 346.)

espect

Oligh ctive mum -iods 2012

rest con

ent Lich 41 01 he

12 U.S.C. $773

Mortgages on farm lands under United States reclamation projects.—The term “first mortgages”, as used in section 771 of this title, shall be construed to include mortgages on farm lands under United States reclamation projects, notwithstanding there may be against such lands a reserved or created lien in favor of the United States for construction or other charges as provided in sections 372, 373,

381, 383, 391, 392, 411, 416, 419, 421, 431, 432, 434, 439, 461, 491, 498 of Title 43, and acts amendatory thereof and supplementary thereto, known as the reclamation law: Provided, That such lands are otherwise eligible for loans under this subchapter: And provided further, That the amount and date of maturity of such lien shall be given due consideration in fixing the value of such lands for loan purposes. (May 15, 1922, c. 190, $ 3, 42 Stat. 542.)

The text of this section in the United States Code contains the words "this chapter" instead of “this subchapter.

[merged small][ocr errors][ocr errors][merged small]

12 U.S.C., $ 773a

Loans on lands in drainage, irrigation, or conservancy districts.-The Farm Credit Administration, the Federal Farm Mortgage Corporation, the Federal land banks, the Land Bank Commissioner, and any lending or financing agency established by or under [subchapters I, III, IV and V of] this chapter, are authorized to make loans or acquire mortgages on lands in any drainage, irrigation, or conservancy district, notwithstanding the existence of any prior lien or charge arising out of an assessment for special benefits made by such district, in any case where (1) such land is otherwise eligible for

a loan, (2) such assessment is payable over a period of years, and (3) reasonable security exists for the repayment of the loan, taking into consideration all facts and values, including the term and size of the loan, the integrity of the applicant, and the increased earning capacity of the lands arising from the improvements or benefits in respect of which the assessment was made. (June 4, 1936, c. 496, 49 Stat. 1461.)

The words in brackets do not appear in the United States Code.

POWERS OF FEDERAL LAND BANKS GENERALLY

12 U, S, C., 8781

F.F.L. Act, 8 13 Enumerated powers.—Every Federal land bank shall have power, subject to the limitations and requirements of this subchapter

first. Issuing and selling farm loan bonds.-To issue, subject to the approval of the Farm Credit Administration, and to sell farm loan bonds of the kinds authorized in this subchapter, to buy the same for its own account, and to retire the same at or before maturity. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 27, 1933, Ex. Or. 6084.)

Second. Investing funds in first farm mortgages -- To invest such funds as may be in its possession in the purchase of qualified first mortgages on farm lands situated within the farm credit district within which it is organized or for which it is acting. In order to rednce and/or refinance farm mortgages, to invest such funds as may be in its possession in the purchase of first mortgages on farm lands situated within the farm credit district within which it is organized or for which it is acting, or to exchange farm loan bonds for any duly recorded first mortgages on farm lands executed prior to May 12, 1933, at a price which shall not exceed in each individual case the amount of the unpaid principal of the mortgage on the date of such purchase or exchange, or 50 per centum of the normal value of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined upon an appraisal made pursuant to this subchapter, whichever is the smaller: Provided, That any mortgagor whose mortgage is acquired by a Federal land bank under this paragraph shall be entitled to have his farm mortgage indebtedness refinanced in accordance with the provisions of sections 711-723 and 731–734 of this title, on the basis of the amount paid by the bank for his mortgage. (July 17, 1916, c. 245, § 13, 39 Stat. 372; May 12, 1933, c. 25, $ 22, 48 Stat. 42; Aug. 19, 1937, c. 704, 8 5 (a), 50 Stat. 704).

Third. Receipt and deposit of mortgages as collateral for bonds; collection of moneys payable under mortgages and bonds.---To receive and to deposit in trust with the farm loan registrar for the district, to be by him held as collateral security for farm loan bonds, first mortgages upon farm land qualified under section 771 of this title, and to empower national farm loan associations, or duly authorized agents, to collect and immediately pay over to said land banks the dues, interest, amortization installments and other sums payable under the terms, conditions, and covenants of the mortgages and of the bonds secured thereby. (July 17, 1916, c. 245, $ 13, 39 Stat. 372.)

Fourth. Acquiring and disposing of property. To acquire and dispose of

(a) Such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be in part leased to others for revenue purposes.

[merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][ocr errors][ocr errors]

(b) Parcels of land acquired in satisfaction of debts or purchased at sales under judgments, decrees, or mortgages held by it. But no such bank shall hold title and possession of any real estate purchased or acquired to secure any debt due to it, for a longer period than 5 years, except with the special approval of the Farm Credit Administration in writing. Every such bank may carry real estate as an asset, for a period of not exceeding 5 years, at its normal value but not to exceed the amount of the bank's investment therein at the time of acquirement of such real estate. (July 17, 1916, c. 245,

§ 13, 39 Stat. 372; Mar. 4, 1933, c. 270,8 3,47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.)

Fifth. Depositing securities and funds with reserve banks.-T. deposit its securities and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed. (July 17, 1916, c. 245, § 13,39 Stat. 372.)

Sixth. Receiving deposits from associations.-To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits. (July 17, 1916, c. 245, $ 13, 39 Stat. 372.)

Seventh. Borrowing money.-To borrow money severally, or jointly and severally with one or more other Federal land banks, to give security therefor, and to pay interest thereon. (July 17, 1916, c. 245, § 13, 39 Stat. 372; June 30, 1945, c. 204, § 5, 59 Stat. 267.)

Eighth. Buying and selling obligations of United States; purchas- . ing notes and mortgages of Federal Farm Mortgage Corporation. To buy and sell United States Government obligations direct or fully guaranteed; and to purchase and acquire from the Federal Farm Mortgage Corporation notes and mortgages representing loans made by the Land Bank Commissioner pursuant to section 1016 of this title, upon farm property situated in the farm credit district in which said bank is located, and purchase money mortgages and contracts for the sale of farms held by the Federal Farm Mortgage Corporation in connection with the sale of farm property situated in such district: Provided, That no such note and mortgage, purchase-money mortgage, or contract shall be purchased pursuant hereto unless (1) the unpaid balance of the indebtedness represented or secured thereby, together with any indebtedness to the Federal land bank secured by a prior mortgage on the property, does not exceed 65 per centum of the normal value of the farm as determined upon appraisal made pursuant to this subchapter; (2) the borrower acquires such stock in a national farm loan association, in addition to any available stock which he may already own, as may be necessary to constitute an amount equal to one share of stock for each $100 of the unpaid balance of the indebtedness represented or secured by the note and mortgage, purchase-money mortgage, or contract being purchased and acquired, together with the indebtedness secured by any prior lien on the property in favor of the Federal land bank; (3) the national farm loan association in which such stock is held 'elects the borrower to membership, if not already a member, and agrees to be liable for the indebtedness secured by the note and mortgage, purchase-money mortgage, or contract being purchased and acquired; and (4) the land bank takes such action, if any, as may be necessary to reduce the rate of interest on the indebtedness secured by the mortgage, purchase-money mortgage, or contract acquired or purchased to the same rate of interest the

bank is charging on first-mortgage loans which it is then making. (July 17, 1916, c. 245,

[ocr errors][merged small][ocr errors][merged small][merged small]

$ 13, 39 Stat. 372; Aug. 19, 1937, c. 704, § 15 (a), 50 Stat. 708; June 30, 1945, c. 204, $ 6, 59 Stat. 267.)

Ninth. Charging fees for loans. To charge applicants for loans and borrowers, under rules and regulations promulgated by the Farm Credit Administration, reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by law in the State where the land to be mortgaged is located may also be included in the preliminary costs of negotiating mortgage loans. The borrower may pay such fees and charges or he may arrange with the Federal land bank making the loan to advance the same, in which case said expenses shall be made a part of the face of the loan and paid off in amortization payments. Such addition to the loan shall not be permitted to increase said loan above the limitations provided in section 771 of this title. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Mar. 27, 1933, Ex. Or. 6084.)

Tenth. Extension of obligation unpaid under terms of mortgages.When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. The sum of $25,000,000 of the amount authorized to be appropriated under section 698 of this title shall be used exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this paragraph. The terms of any such extension shall be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension, or in the case of any deferment of principal as provided in paragraph "Twelfth” of section 771 of this title, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by, the bank with the approval of the Commissioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscriptions to the paid-in surplus of the Federal land banks, there is authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Land Bank Commissioner. The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Land Bank Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion

[merged small][merged small][ocr errors][ocr errors]
[ocr errors][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small]

the bank has resources available therefor. The unexpended bal-
ances of the funds appropriated by the Fourth Deficiency Act, fiscal
year 1933, approved June 16, 1933 (48 Stat. 279), the Emergency
Appropriation Act, fiscal year 1935, approved June 19, 1934 (48
Stat. 1060), the Second Deficiency Appropriation Act, fiscal year
1935, approved August 12, 1935 (49 Stat. 592), the First Deficiency
Appropriation Act, fiscal year 1936, approved June 22, 1936 [49 Stat.
1597], the Treasury Department Appropriation Act, 1937, approved
June 23, 1936 [49 Stat. 1827], and the Treasury Department Appro-
priation Act, 1938, approved May 14, 1937 [50 Stat. 137], for the
purpose of enabling the Secretary of the Treasury to make subscrip-
tions to the paid-in surplus of the Federal land banks, as provided for
in this paragraph, and the proceeds of all repayments on account of
such paid-in surplus, shall be held in the Treasury of the United
States as a revolving fund and shall be available for subscriptions to
paid-in surplus made pursuant to this paragraph. (July 17, 1916,
C. 245 g 13, 39 Stat. 372; Jan. 23, 1932, c. 9, 85, 47 Stat. 14; May 12,
1933, c. 25, § 23, 48 Stat. 43; June 16, 1933, c. 98, $ 80, (a), 48 Stat.
273; Aug. 19, 1937, c. 704, $ 19,50 Stat. 709.)
For interest rate on extended payments, see paragraph "Twelfth" of this section.

Eleventh. Postponement of payment of installments of loans.-At any time within five years after March 4, 1933, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approval of such application by the directors of the bank postpone the payment of any unpaid installment or installments in the manner herein provided in this section. Such postponed payment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed payment, and in the case of semiannual installments, by paying at the time each succeeding semiannual installment is due, one-twentieth of the postponed payment, until the amount of such postponed payment has been paid. In any case in which the number of remaining installments due on the mortgage is less than ten, in the case of annual installments, or less than twenty, in the case of semiannual installments, the amount of the postponed payment shall be distributed proportionately over the remaining number of installment payments. (July 17, 1916, c. 245, $ 13, 39 Stat, 372; Mar. 4, 1933, c. 270, $4, 47 Stat. 1548.)

Twelfth. Interest rate; on extended payments; on taxes, liens, etc., paid by mortgagee. For the period of five years after March 4, 1933, every borrower shall pay simple interest on extended payments at the same rate of interest as stipulated in the mortgage securing the loan as to payments not in default and by express covenant in his mortgage deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear interest at the rate provided in the mortgage. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Mar. 4, 1933, c. 270, $4, 47 Stat.

1548.)

« PreviousContinue »